Fragrance Group has announced that it is looking to spin off its hotel business with an eventual listing on the mainboard of the Singapore Exchange.
In a statement on Thursday, the company said the time frame for the listing will depend on shareholders approval and prevailing market conditions.
It added that in connection with the proposed listing, the Group has formed an investment holding company, Global Premium Hotels (GPH) to hold the hotel business.
It said that the intention is for GPH to acquire the hotel business for S$558 million.
This is based on net tangible assets of the Group’s hotel subsidiaries amounting to S$635.2 million and after adjusting for a discount of S$67.2 million and a dividend of S$10 million.
The hotel business includes 22 hotels under the Fragrance Hotel brand.
Fragrance said it will hold more than 50 per cent of Global Premium Hotels.
It is proposing to use a substantial proportion of the proceeds received from the sale of its hotel business for the expansion of its Property Business, investments, debt repayments, and general corporate and working capital purposes.
Source : Channel NewsAsia – 8 Mar 2012